The How of Employment, Staffing Agency Insurance Coverage

Generally speaking, there is no one-size fits all business insurance policy. Every industry and every niche in an industry has its own pitfalls. This is why the insurance companies offer plans corresponding to the individual risk exposure faced by each enterprise.

For those involved in locating job posts and employees that fit the want ad of a company, there are many risks. The summaries below outline what each agency does and why specialized coverage is so necessary.

Errors and Omissions Insurance Coverage for the Employment Agency

Employment agencies and their counselors generally operate in big urban centers. They benefit both employer and employee by facilitating job placements.

An employment agency typically matches employees to businesses for the following positions:

• Main administrators

• Secretaries

• Clerical workers

• Other office workers

Although most employment agencies assist in a broad manner, others find employment and employees in specialty industries. The specialty agency involves itself in placing skilled as well as non-skilled personnel into businesses.

Both the general and specialty employment agency and its counselors face a wide exposure to errors and omissions exposure if a recommended employee does not perform in accordance to specifications. Held accountable for misrepresentation the employment agency can face a charge of negligence or error or omission. Moreover, the employment agency can be sued if it slanders a job candidate.

Employment Temporary Service Agency Insurance Coverage

In contrast to a general employment agency, the temporary services agency provides temporary employees for commercial offices, engineering businesses, light manufacturing operations, and servicers. The temporary employee service is important for organizations that contend with elevated peaks. The service is also used in the event temporary help is needed to replace employees on vacation or leave of absence. Associated coverage can consist of:

• Professional liability

• Liability in the event there are damages due to temporary worker’s activities

• Workers compensation involving the temporary worker

Insurance for Employee Staffing Services

Employee staffing services is different from the aforementioned. The employee staffing service provides employees for businesses as per a contract basis. The employee staffing service is in responsible for workers’ pay, benefits, workers comp and other human resource matters as it relates to the job. Insurance can incorporate:

• General as well as professional liability

• 3rd-party fidelity coverage

• Employee practices liability

• Workers compensation

For more information about general and specialty employment service and temporary employment insurance, as well as insurance coverage for an employee staffing service, contact an experienced independent insurance agency.

Insurance For Truck Drivers – The Coverage You Need

First, truckers, tractors, and trailers, are insured as commercial equipment and not automatically afforded the coverage extensions of a personal auto policy. Electronics, loading equipment, load securing equipment, rental reimbursement and personal property are insured differently and are not automatically covered.

Commercial Auto Liability is pretty straight forward. If a trucker has ICC Authority, a filing for proof of financial responsibility will be given to the Feds. Filings are what keeps a trucker compliant with federal (ICC) authority requirements. Uninsured / Under Insured Motorist is also helpful for a trucker that has been injured by a vehicle with out insurance. Medical payments are useful when some one is injured in and on your truck.

Cargo insurance covers the truckers’ responsibility for others goods he is hauling. There are 3 different forms or policies: Named Perils and Theft which is narrow in coverage, Broad Form which adds certain coverage to the basic form and All Risk coverage which offers coverage for all causes unless excluded by language in the policy. Regardless of the form, There are certain coverages a trucker would need. Truckers should buy cargo coverage equal to the highest value of goods they haul. Some policies have a co-insurance clause that can limit coverage limits if you are hauling a higher value load than the limit insured on your policy.

1) A refrigerated carrier would need Reefer Malfunction or Reefer Breakdown coverage to cover the damage from freezing or spoilage incurred if his reefer unit breaks down. Remember to find out if the policy covers a mistake in setting the temperature control device. Most reefer policies only cover in case of a unit breakdown or malfunction.

2) A flat bed carrier should have a wetness coverage or endorsement in the event his load is damaged from rain or snow. Most policies have a tarpaulin endorsement that limits coverage to loads that are properly covered. Sometimes a tarp can be damaged or blow loose due to no fault of the trucker resulting in damage to the load that may not be covered unless wetness coverage is added. Coverage for tarps, chains and binders is also desired to replace stolen or damaged binding equipment that are not other wise covered.

3) A dry van carrier would be advised to make sure that shifting of a load is covered. In this type of operation, larger and longer trailers are used and load securing equipment can fail. These instances are rare but do happen.

Every trucker should have earned freight coverage on his cargo policy. This coverage pays for lost revenue when he is not able to deliver his load due to a covered loss. Disposal and cleanup coverage for a loss should be at least $10, 000.

Physical Damage coverage is generally to repair the tractor and trailer in case of a covered loss. This coverage is insured on a stated value. The value set for the equipment is the truckers responsibility. The insurance company will pay a loss based on equipment of like quality. That means market value. So the trucker should make sure his values are accurate. Remember you will pay a deductible for each unit unless your policy has a combined deductible endorsement. Also towing is only for a covered loss not disablement or breakdown. Many policies pay losses and include towing and storage limits in the stated amount of the vehicle, so if you have a loss and a big tow or storage bill, the policy limit may not cover all your loss. Towing coverage can and should be purchased in addition to physical damage. Make sure your towing policy covers disablement and roadside service.

Electronics like cell phones, televisions and radios are generally not covered unless you buy additional coverage. Your personal property is also not covered unless specifically covered in the policy but may be covered by your home owners insurance. Rental reimbursement is also not automatically covered.

I’ve insured truckers for many years and know the emotional attachment to their trucks can be very strong, but the insurance companies see them as a piece of equipment used to generate revenue. Therefore, the older they are and more miles they have, the less money they are worth. Also betterment issues come into play. Tractors run many more miles than automobiles and have a longer life. The average tractor travels between 115, 000-135, 000 miles a year. Some insurance companies take this into consideration when replacing an engine or suspension part after a wreck. If the part life is expected to be 500, 000 miles and you have a wreck at 250, 000 miles some insurance companies will only pay half of the replacement value of the part because half of the parts expected life has been used. If an agent does not know how his insurance company handles this upfront, there may be hell to pay.

General Liability is for incidental liability exposure not covered by the commercial auto policy. This is a good coverage for auto haulers who may drive vehicles to a location after they are unloaded from a trailer. Also a trucker that uses his own forklift to load and unload cargo.

Workers Compensation is required for injury to truckers or their employees. Occupational Accident is a low cost alternative with certain coverage advantages and disadvantages. It is always best to see a Truck Insurance Specialist to explain all these coverages and to get advise on particular types of trucking risks.

For more info about me and truck related issues, see the links below.

What Type of Insurance Coverage for the Amazon Vendor?

If you are involved in e-commerce by selling online, you might realize that you face similar risks as other business. Those involved in the Amazon marketplace are required by the company to obtain a certain amount of business coverage up to $1,000 per occurrence:

• Commercial general liability insurance

• Bodily injury insurance

• Personal injury insurance

• Property insurance

Amazon vendors need to realize that this is limited coverage that will not protect them if losses necessitate a larger claim. Like any business person, those involved in e-commerce need to assess their needs and acquire appropriate related insurance protection.

General Liability

General liability insurance is a basic coverage for the online seller – as it is traditional brick and mortar retail outlets. It is there to protect your business from liability to:

– Injuries

– Negligence

– Accidents

If a related lawsuit occurs, this insurance can pay for payment you are judged to pay and legal expenses.

Products liability coverage generally is tied to this policy. It protects the manufacturer or seller in regard to bodily injury or property damage to a third party that occurs because of a faulty product.

There are instances, however, when this form of coverage does not help. Why? In the event a seller is not rated appropriately and files a claim, he or she may get a ‘no’ from the insurer.

Take the case of Mary – an Amazon vendor that successfully sold skin care products to an online market.

All was fine, business-wise, for Mary until the fateful day when a consumer sued her in relation to a serious skin flare-up credited to the creams sent to her by Mary. When Mary filed a claim, she was in for a shock: the insurance company denied coverage because her policy was wrongly rated as an internet retailer. As someone that placed her company labels on her creams, she should have been rated ‘a manufacturer’!

Too bad her agent did not catch the mistake! The financial consequences had a far-reaching effect, eventually forcing her to file for bankruptcy.

While this spells out the urgency of being on the lookout for problems with a policy, there are other forms of coverage that an Amazon seller needs to be highly cognizant of.

Other Policies for the Amazon Seller

One of the chief concerns any Amazon seller has is the possibility of being suspended from the Amazon network of sellers. If this occurs, the loss of income can be substantial. Amazon Suspension Insurance Policy is the number one coverage that is recommended for the industry across the board.

Other insurance policies to consider are:

• Business Auto

• Workers Comp

• Umbrella/Excess

• Cyber Liability

• Ocean Marine

• EPLI

Of course, nothing takes the place of speaking to an insurance professional that will steer you to a tailored insurance program made for you.